Time for Time Tracking: What You Can Take Away from Our Tool Talk

It has been quiet around the “Time Clock Judgment” of the ECJ for a long time. And in Germany, a legal basis is still missing. But since 2022 it is clear: employers here are also obliged to record the working hours of their employees. Anyone who has so far postponed it could gather the most important information about time recording and practical tool tips from our free Tool Talk. The recap and answers to the burning questions are here. For this, we have also spoken to our host Guido Zander afterwards.

The end of trust-based working time?

Already in May 2019, the European Court of Justice (ECJ) decided: companies in the EU must log the working hours of their employees. But in Germany, the legal basis for it is still waiting. What is there instead? Much room for interpretation and some gray areas. In September 2022 a Judgment of the Federal Labor Court (FLC) confirmed at least that the obligation to record working hours also applies to German companies (BAG - 1 ABR 22/21). Federal Minister of Labor Hubertus Heil will probably present the corresponding draft law this spring.

Above all in times of home office and flexible work, such decisions regularly cause a stir: do they ring the end of trust-based working time? The desire for as much self-determined work as possible meets at least equally important occupational safety. Now it's up to the company to find a solution that unites both. Of course, legal uncertainties do not necessarily make this easier. However, the most important requirement exists and we explain how your company can implement it.

What time recording means - and what not

No Tool Talk without tools: At our online seminar, no less than three software providers were on the start to introduce their really different solutions for time recording. Crewmeister, ZMI and ZEP set different focuses with their offers and thus are suitable for individual requirements. Together with our host Guido Zander, an expert in working time and workforce, they answered the burning questions about the ECJ and FLC rulings.

The most important thing to start: What does time recording mean at all? Since the judgment of the ECJ, everyone talks about the obligation to record working time. But employees only need to document their working hours. Guido has explained the differences:

Time recording

• done with time clock
• is usually tamper-proof
• can be controlled
• provides transparency about working time violations
• is usually the basis for automatic surcharge determination and working time accounts
• is not what the ECJ demands

Time documentation

• times are written down by employees themselves
• is not necessarily tamper-proof
• hardly any control possible (employees can write down their working times freely, they may differ from the actual times)
• provides transparency about working time violations
• usually no basis for surcharge determination and working time accounts
• is what the ECJ demands

To avoid missteps here, employees must document their actual working hours to keep track of resting times. This should also be done promptly. Therefore, the times from the beginning of the month should not only be written down at the end of the month. Employers have to keep an eye on making sure that everything is right and provide the recordings to the authorities for inspections. Whether this is a big pile of paper or huge Excel tables doesn't matter.

Tools for time recording are as individual as their requirements

The easiest way to record working hours is with time recording tools. This allows everyone involved to keep track and the software takes off many work steps. The tool offer is huge and their different functions are suitable for various requirements. So before you decide on a tool, you should deal with a few questions. For example:

• What features do you need? Is simple time documentation enough or should the tool be able to do more?
• How big is your company?
• In which industry are you on the go?
• Does the tool have to be connected to a terminal?

There are time recording tools that specialize in certain industries or that are suitable for very general requirements. For our Tool Talk we had three all-rounders in the luggage, which could hardly be more different:

Crewmeister

Crewmeister is a cloud-based time recording software for small and medium-sized companies. The tool focuses on the most important functions, which allows a quick introduction. Employees can document their working time in different ways and access Crewmeister on-the-go via an app. With a DATEV interface, for instance, you can link HR and accounting software with the tool.

ZMI

The time recording software from ZMI comes without industry focus. The extensive solution is suitable for companies ranging from SMEs to large corporations and can be used either cloud-based or on-premise. Interfaces to HR and ERP tools are just as possible as direct execution of HR tasks directly in the software. In addition, ZMI can be linked with time clocks and other time recording hardware and also be used mobile.

ZEP

ZEP offers you time recording according to a modular principle: The software can be expanded as desired using standardized interfaces to other tools or via API. Three product lines cater to different requirements. So you can just track times or get solutions for project business up to controlling and invoicing. ZEP is suitable for all possible company sizes and is used by both freelancers and companies with several thousand employees.

Which tool for time recording is right for your company mainly depends on your requirements. All three providers from our Tool Talk also allow you to integrate freelancers for a good overview of your project business. For the exact extent and which functions the three also have in store, you should take a look at the recording of our Tool Talk. How to get it, we'll tell you later.

Still time for questions? We asked Guido Zander the most important ones

Time recording, time documentation, control: anyone who has enjoyed all the perks of trust-based working hours so far probably doesn't like to think about the ruling of the European Court of Justice. But Guido knows: this is mainly about occupational safety and it is important. With the judgment, companies are obliged to take care of their employees. So, everyone has to record their working hours. Usually only managing partners and senior employees are exempt.

We asked Guido what is important in time recording. Besides, he has a few tips for you on how to get your employees in the mood for the change.

Does the time documentation have to be done by the employees themselves or can a direct supervisor also take over?

Guido Zander: Here we are getting a bit into the gray areas of judicial interpretation and I am not a lawyer. So, I can only express a subjective opinion here.

The ECJ has stated that employers have to provide an objective, reliable and accessible system for recording working hours. The actual recording can be delegated to the employees. A recording via superiors would in my opinion only be possible if the employer ensured that the employees have transparency about the recorded times and could also confirm them if necessary. Then it would be objective and tamper-proof again and in my opinion possible.

What exactly needs to be recorded or documented?

Guido Zander: The records have to allow you to check whether the main points of the Working Hours Act are being complied with. That would be the resting time of eleven hours, the maximum working time, and compliance with the statutory break.

If, for example, you simply record the start and end of a working day, including the amount of hours worked, you can check whether there was a resting time of at least eleven hours between the actual day and the previous day. For example, 8.5 hours of work between nine and 19 o'clock: The 8.5 hours are less than the maximum working time of ten hours. The difference between ten hours of maximum work time between nine and 19 o'clock and the actual working time of 8.5 hours is also more than 30 minutes. Therefore, it can be assumed that there has been a legally compliant break.

Subject to the actual implementation into German law, legal practitioners have confirmed to me that this type of recording is ECJ-compliant.

Do the documented working hours have to be transferred to an external location or is it sufficient if they are available for possible checks in the company?

Guido Zander: It is sufficient if they are available in the company and accessible for works councils and external bodies.

What does “non-manipulable” mean? If the employees are supposed to document their working hours themselves, they could theoretically falsify their entries …

Guido Zander: This is the nature of trust-based working time and this risk is taken because the recording can be delegated to the employees. The ECJ, however, assumes the need for protection of the employees. Therefore, the point of non-manipulation certainly means that the employer cannot manipulate the recorded times.

How can companies pitch the time documentation to their employees? Anyone who has so far enjoyed unrestricted trust-based working hours is probably initially annoyed by the change. Can you give our readers a few advantages?

Guido Zander: That's a good, but also a difficult question that we have faced ourselves. Ultimately, there is no choice because you have to obey the law. The additional effort now seems so high because in most cases one has not adhered to the current Working Hours Act. Because the current legal situation says that any deviation from eight hours must be documented.

I assume that in a trust-based working time rarely exactly eight hours are worked. This means that today you would probably have to record this deviation on not a few working days. But obviously, there is a consensus that nobody has done it and it has also not really been checked. I fear therefore: If someone is currently very satisfied, it will probably be difficult to make the extra effort palatable.

However, the following thought might be helpful: In principle, the recording can lead to an overload situation becoming transparent. In this way, self-exploitation can be recognized faster and possibly a continuous overload can be prevented by joint prioritization between employees and managers. In addition, documented working hours can provide more transparency about the staffing needs, so that underemployment and thus also overloads can be better avoided or capacities can be planned more realistically.

Start recording working hours better yesterday

A lot of time has passed since the “Time Clock Judgment” of the ECJ. But the judgment of the Federal Labor Court last September at the latest should be understood as a starting signal to record working hours correctly. While a legal basis is still missing. However, the BAG judgment states that hours must be recorded with immediate effect. And once the law is in place, it can be enforced directly.

For time recording you do not necessarily have to use software, but it is helpful. In our Software Guide for Time Recording we present the best tools besides Crewmeister, ZMI and ZEP to you.

You didn't have time for our Tool Talk? How good that we recorded it for you here. Enjoy!